Two weeks ago my insider sources started to feed me with negative news regarding the future of American IronHorse Motorcycles Company. The only one I published last week was that the company seemed to be idling, not building bikes. When in May 2008 a U.S. bankruptcy judge in Fort Worth agreed to the sale of defunct American IronHorse Motorcycles to Scott Meyers for $6.7 million (with a total cost for the acquisition in excess of $8 million because it included liabilities in the form of warranties on existing bikes), the purchase was financed by $2.5 million of Scott own money and a $6.7 million line of credit from Textron Financial, American IronHorse’s main lender.
Now, it is rumored that Scott Meyer is fighting (suing?) Textron Financial (who is still owed millions by AIH) for dumping AIH bikes at auctions or via Renegade Cycles (new name of dealer IronHorse Of Texas). In addition, in December 2008 Textron Financial Corporation already announced plans to exit all of its commercial finance businesses, other than that portion of the business supporting the financing of customer purchases of products manufactured by its parent company, Textron Inc. So, does it mean that Textron is no more floor financing the remaining AIH dealers? A lender trying to get back his money asap, no bikes produced and no dealers financing… Could it get worse? I am convinced that Scott Meyers’s intentions were great when he decided to acquire the defunct American IronHorse, to the point that he even got rid of his own successful dealership in Minnesota. But I always thought that his acquiring deal was a terrible one. I invite Scott to provide my readers with all information regarding his company. To Follow….(picture of Scott Meyers)